The balance sheet account form is used to create or edit existing balance sheet accounts.
To create a new balance sheet account, navigate to the Settings tab, select Chart of Accounts, and then click on New Account located in the Balance Sheet section of the chart of accounts.
The form includes the following fields:
Enter a descriptive name for this balance sheet account.
Use clear names that indicate the account's purpose, such as 'Prepaid Insurance', 'Accrued Expenses', or 'Loan from ABC Bank'.
This name appears in the chart of accounts, on reports, and in transaction entry screens.
Enter an account code to organize and identify this account in your chart of accounts.
Account codes are optional but recommended for systematic organization. Use a numbering scheme like 1000-1999 for assets, 2000-2999 for liabilities.
The code appears before the account name in lists and helps with sorting and searching.
Select the balance sheet group where this account should appear on financial reports.
Groups organize accounts into categories like Current Assets, Fixed Assets, Current Liabilities, or Long-term Liabilities.
Proper grouping ensures your Balance Sheet displays accounts in the correct sections with appropriate subtotals.
Select how this account should be classified on the Cash Flow Statement.
Operating Activities: Day-to-day business operations like receivables, payables, and prepaid expenses.
Investing Activities: Purchase or sale of long-term assets like equipment or investments.
Financing Activities: Borrowings, loan repayments, and owner contributions or drawings.
Enable this option to set a default description that automatically appears when using this account.
The default description saves time during transaction entry and ensures consistency across similar transactions.
For example, 'Monthly rent payment' for a rent expense account or 'Office supplies' for a supplies account.
Enable this option to automatically apply a specific tax code when this account is selected.
Useful for accounts that always have the same tax treatment, such as taxable sales or tax-exempt items.
The default tax code can be overridden during transaction entry if needed.
Balance sheet accounts at the top level cannot use foreign currencies. This is because these accounts must always appear in the base currency on financial statements, even if they were originally in a foreign currency. Therefore, if you need a custom balance sheet account that operates in a foreign currency, you should set it up as a Special Account within the Special Accounts tab.
For more information see: Special Accounts